US inflation heats up to 3% for first time since June

It’s not just eggs. Many commonly purchased goods and services got more expensive in January, driving inflation in the wrong direction and to its highest rate since June of last year.

It’s not just eggs. Many commonly purchased goods and services got more expensive in January, driving inflation in the wrong direction and to its highest rate since June of last year. Consumer prices rose 0.5% from December — the fastest pace since September 2023 — resulting in an annual inflation rate of 3% for the 12 months that ended in January, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics. Economists were expecting Wednesday’s report to be fairly unexciting, with barely any change from December’s data. Instead, the January report came in hot pretty much across the board — an unwelcome surprise at a time when the cost of living continues to weigh on Americans, the Federal Reserve is wanting to see inflation slow, and uncertainty is brewing as to how President Donald Trump’s heavy-handed tariffs and other policies could affect prices. “The long national nightmare of inflation isn’t over yet for consumers, businesses, and investors,” Chris Rupkey, chief economist at FwdBonds, wrote in commentary issued Wednesday morning. “There could be some seasonality that pushes prices up at a faster clip in January, but today the news for [Federal Reserve] officials is all bad.”